The hang up seems to be if the LOC funds were used to improve my house. The truthful answer is no, which is how I answered the question in Turbotax. This limits my deduction for federal taxes, but according to the NYS instructions, the deduction is only limited if the balance exceeds $100,000 which it does not. If I answer yes to the question of using the money for home improvements, then Turbotax gives me the deduction for BOTH federal and NY. But this is not correct.
It's entirely likely that I'm missing something on this, so if so please set me straight. If I'm right in my reading of the rules, then how do we fix this?
